The nature of informal networks in various societies, and particularly whether they recede or ten... more The nature of informal networks in various societies, and particularly whether they recede or tend to persist over time, has long been a subject of discussion in international business studies. However, empirical research on trust in network-oriented societies, where individuals typically maintain somewhat different relationships with their in-group, out-group, and non-specified others, remains limited. Drawing on insights from informal network research and intergroup contact theory to model trust relationships in network societies, 882 respondents from three network societies -- China, Russia, and South Korea -- were surveyed, and confirmatory factor and path analyses applied. The results suggest that as network importance increases, both in-group trust and out-group trust also increase. Individuals who more commonly draw upon out-group trust ties attach less importance to in-group trust ties. Increases in non-specific trust, however, are associated with increases in both in-group and out-group trust, pointing towards the boundary spanning function of non-specific trust. Consequently, rather than finding a clear indication of whether informal networks persist or recede, ambivalent trust relationships were observed. This calls for a reexamination of the conventional ‘either/or’ perspective on the nature of informal networks. This network heterogeneity can be attributed to individuals, especially in developing network societies, utilizing a ‘both/and’ approach to trust and networking, and yielding more economic opportunities.
Social capital can be defined as the sum of resources embedded within, available
through, and d... more Social capital can be defined as the sum of resources embedded within, available
through, and derived from the network of relationships possessed by an individual. We distinguish three schools of thought on social capital: the first views it alongside other forms of capital - economic, cultural, symbolic - to explain social stratification, highlighting the benefits of network membership; the second merges sociological and economic perspectives, emphasizing the functions and outcomes of social capital for individuals, groups, organizations, and institutions; the third focuses on societal features such as trust, norms, and networks that enhance societal efficiency. Further, this paper explores developments in social capital theory, demonstrates specific applications, and suggests areas for future research.
During the last two decades North Korea suffered from famine and economic crisis. Today, the situ... more During the last two decades North Korea suffered from famine and economic crisis. Today, the situation has not improved substantially. The theory of regime change suggests that an economic crisis provides the basis for a civil movement, which is considered as being an important force for a regime change. This does not apply to the case of North Korea. Paradoxically, the political system appears to be relatively stable. This research note outlines the key factors that contribute to the stability of the political system so far. Furthermore, especially in light of a possible change of the country's leadership, challenges to system stability that may play an important role in the future are discussed.
The nature of informal networks in various societies, and particularly whether they recede or ten... more The nature of informal networks in various societies, and particularly whether they recede or tend to persist over time, has long been a subject of discussion in international business studies. However, empirical research on trust in network-oriented societies, where individuals typically maintain somewhat different relationships with their in-group, out-group, and non-specified others, remains limited. Drawing on insights from informal network research and intergroup contact theory to model trust relationships in network societies, 882 respondents from three network societies -- China, Russia, and South Korea -- were surveyed, and confirmatory factor and path analyses applied. The results suggest that as network importance increases, both in-group trust and out-group trust also increase. Individuals who more commonly draw upon out-group trust ties attach less importance to in-group trust ties. Increases in non-specific trust, however, are associated with increases in both in-group and out-group trust, pointing towards the boundary spanning function of non-specific trust. Consequently, rather than finding a clear indication of whether informal networks persist or recede, ambivalent trust relationships were observed. This calls for a reexamination of the conventional ‘either/or’ perspective on the nature of informal networks. This network heterogeneity can be attributed to individuals, especially in developing network societies, utilizing a ‘both/and’ approach to trust and networking, and yielding more economic opportunities.
Special Issue Theme Background Research on the mechanisms of organizing and managing via interper... more Special Issue Theme Background Research on the mechanisms of organizing and managing via interpersonal relations has a rich history in the management and organization-oriented literature. So far, however, the informal dimension of managing and organizing by drawing on informal networks in an international context has received comparably less attention. Recent research has pointed out that social capital and network theories have largely been developed by Western scholars based on circumstances and social structures that are typical of Western societies. Thus, current theory takes into account to a lesser extent their character and nature and the way in which informal ties and networks are formed in other parts of the world (Ledeneva, 2018; Li, 2007b; Qi, 2013; Sato, 2010). Besides the growing body of literature concerned with informal ties and networks in emerging and transitioning countries, for example guanxi (China), blat/ svyazi (Russia), and wasta (Arab World), a trend for analyzing pervasive informal networks in advanced and industrialized economies, such as yongo (Korea), has arisen. While insights from the latter research stream indicate that informal networks persist, the results generated in both research streams will help in developing the extant informal network theories further.
So far overlooked by the international business ethics literature, we introduce, characterize, an... more So far overlooked by the international business ethics literature, we introduce, characterize, and normatively analyze the use of affective ties and networks in South Korea from an ethical point of view. Whereas the ethics of using Guanxi in China has been comprehensively discussed, Korean informal networks remain difficult to manage for firms in South Korea due to the absence of existing academic debate and research in this field. In this study, we concentrate mainly on the question of whether foreign firms will and can use affective ties in Korea. The informal social network forms are classified and contrasted with the conventional ethical approaches used in international business ethics (relativism, universalism, and social contract theory) to assess which categories can be regarded as ethical or unethical. Finally, foreign firms are advised how to cope with and use different affective network types. Although the nature of affective ties and networks in Korea differs from that found for instance in China (Guanxi), consistent with the conclusion of prior research, we recommend particularistic analysis and decision making regarding the circumstances in which to conclude affective ties and networks and when to opt out. We conclude that foreign firms in Korea should invest in establishing Inmaek, refrain from engaging in Yonjul, and support host country nationals' Yongo ties. Moreover, it is suggested that foreign firms should find ways to monitor and manage informal ties effectively.
Although there has been a large amount written about Chinese Guanxi networks, a detailed debate c... more Although there has been a large amount written about Chinese Guanxi networks, a detailed debate concerning Korean informal relation-based networks is by comparison under-represented in the international business literature. This paper introduces and distinguishes between three forms of informal relation-based networks in Korea: (1) Yongo, (2) Yonjul and (3) Inmaek. Inmaek describes a social network in general, while Yongo networks draw primarily on existing kinship-, university/school-and regional origin-based ties. Contrary to Yongo ties, Yonjul ties exist for a purpose, often to secure personal gains and benefits. In all three forms, kinship-, university/school-and regional origin-based ties play primary, but not exclusive, roles. A better understanding of Korean informal relation-based networks helps contribute to the advancement of knowledge about the anatomy of informal institution, as well as to the growing field of indigenous management research, by identifying and analysing an influential contextual factor in Korea. In addition, it underlines important implications for management practices in Korea.
The International Journal of Human Resource Management, 2017
South Korean human resource management (HRM), characterized by lifetime employment and seniority-... more South Korean human resource management (HRM), characterized by lifetime employment and seniority-based promotion, has been suggested as an important factor contributing to the growth of Korean companies. However, the Asian financial crisis in 1997, raised questions about these practices, and Korean HRM underwent drastic changes, mainly by adopting a more flexible labor market approach. Despite Korean companies' efforts since then to change their HRM to a more western (US) style, much research indicates persistent challenges, both domestically and internationally. In an attempt to explain the challenges, we argue, in this conceptual paper, that it is necessary to consider the informal organization of Korean management in relation to formal organization. We suggest there are complementary overlaps and close integration between formal and informal organizational modes in Korean management. We fill a gap in the literature on the role of informal organization with indigenous Asian notions supporting the balance of opposition.
The Encyclopaedia of Informality, Volume 3: A Hitchhiker's Guide to Informal Problem-Solving in Human Life (ed., Alena Ledeneva), 2024
Informal networking has been regarded as an important accelerator for getting a job and career pr... more Informal networking has been regarded as an important accelerator for getting a job and career progression (Granovetter 1995, 2017). However, there has been little discussion about whether this holds true for men and women alike, and whether we can generalize across countries and cultures. How far informal networking and cultural practices are intertwined and how this leads to social exclusion as a form of gender discrimination has not been extensively analyzed yet. In this lead paper to chapter 5 on 'Belonging and Social Exclusion' we will present two examples of informal networks to show how male dominance and the intertwinement with cultural traditions represent sources of social exclusion of women as a facet of gender discrimination.
We examine the state of artificial intelligence (AI) adoption within the Talent Acquisition (TA) ... more We examine the state of artificial intelligence (AI) adoption within the Talent Acquisition (TA) function, based on a survey with HR leaders (n=477) across various organizations and industries. Our field data revealed that AI adoption within the TA function is not as pronounced and advanced as some recent reports might suggest. In fact, most organizations do not fully leverage AI in TA. We discuss the barriers and challenges to AI adoption in TA, propose solutions, and present ideas on how AI can enhance TA and its broader post-hiring context of managing people and culture in organizations. Beyond chatbots and virtual assistants, we develop four visions of the future frontiers of AI in TA.
Encyclopedia of International Strategic Management, 2024
Informal networks are formed by informal ties between actors. They can be defined as channels emb... more Informal networks are formed by informal ties between actors. They can be defined as channels embedded in the respective culture that provides the general behavioral norms and ideals for interpersonal exchange. Network members have the privilege of access to favors. They can rely on mutual support and goodwill and the sharing of opportunities, which gives them a relational advantage over non-members (Minbaeva et al., 2022; Horak et al., 2020). While informal networks exist in every country, they differ in their extent, intensity and shape. Typical examples of informal networks include guanxi (China), yongo and inmaek (South Korea), wasta (Arab world) or blat and svyazi (Russia and the post-Soviet states).
Purpose - Research on the commitment to customer service (CCS) typically considers either trainab... more Purpose - Research on the commitment to customer service (CCS) typically considers either trainable behavior or external stimuli such as financial incentives vital to CCS. Utilizing the cultural context of Confucian Asia, this study proposes a novel approach that shifts the focus towards the antecedents of the informal institutional environment.
Design/methodology/approach - This research considers four informal institutions typical for Confucian Asia about their influence on CCS: power distance, perceived individual independence, openness to change, and informal network ties. Hypotheses are tested in a structural equation model using data obtained from a South Korean subject pool.
Findings - Results show that informal institutions like power distance and network ties, and mediators like perceived individual independence and openness to change are positively related to CCS. Power distance and network ties also have a direct positive effect on openness to change. Moreover, power distance negatively affects perceived individual independence.
Research limitations/implications - The findings contribute to the service management literature by showing that a given CCS of service employees can be explained by antecedents of the companys informal institutional environment.
Practical implications - From a human resource perspective, the informal institutional environment should be taken into account when establishing a supporting organizational culture and designing management training programs.
Originality/value - This research introduces the institutional view to services management research, focusing on the role that informal institutions play. In particular, factors like power distance and network ties that influence CCS are tested for the first time.
The nature of informal networks in various societies, and particularly whether they recede or ten... more The nature of informal networks in various societies, and particularly whether they recede or tend to persist over time, has long been a subject of discussion in international business studies. However, empirical research on trust in network-oriented societies, where individuals typically maintain somewhat different relationships with their in-group, out-group, and non-specified others, remains limited. Drawing on insights from informal network research and intergroup contact theory to model trust relationships in network societies, 882 respondents from three network societies -- China, Russia, and South Korea -- were surveyed, and confirmatory factor and path analyses applied. The results suggest that as network importance increases, both in-group trust and out-group trust also increase. Individuals who more commonly draw upon out-group trust ties attach less importance to in-group trust ties. Increases in non-specific trust, however, are associated with increases in both in-group and out-group trust, pointing towards the boundary spanning function of non-specific trust. Consequently, rather than finding a clear indication of whether informal networks persist or recede, ambivalent trust relationships were observed. This calls for a reexamination of the conventional ‘either/or’ perspective on the nature of informal networks. This network heterogeneity can be attributed to individuals, especially in developing network societies, utilizing a ‘both/and’ approach to trust and networking, and yielding more economic opportunities.
Social capital can be defined as the sum of resources embedded within, available
through, and d... more Social capital can be defined as the sum of resources embedded within, available
through, and derived from the network of relationships possessed by an individual. We distinguish three schools of thought on social capital: the first views it alongside other forms of capital - economic, cultural, symbolic - to explain social stratification, highlighting the benefits of network membership; the second merges sociological and economic perspectives, emphasizing the functions and outcomes of social capital for individuals, groups, organizations, and institutions; the third focuses on societal features such as trust, norms, and networks that enhance societal efficiency. Further, this paper explores developments in social capital theory, demonstrates specific applications, and suggests areas for future research.
During the last two decades North Korea suffered from famine and economic crisis. Today, the situ... more During the last two decades North Korea suffered from famine and economic crisis. Today, the situation has not improved substantially. The theory of regime change suggests that an economic crisis provides the basis for a civil movement, which is considered as being an important force for a regime change. This does not apply to the case of North Korea. Paradoxically, the political system appears to be relatively stable. This research note outlines the key factors that contribute to the stability of the political system so far. Furthermore, especially in light of a possible change of the country's leadership, challenges to system stability that may play an important role in the future are discussed.
The nature of informal networks in various societies, and particularly whether they recede or ten... more The nature of informal networks in various societies, and particularly whether they recede or tend to persist over time, has long been a subject of discussion in international business studies. However, empirical research on trust in network-oriented societies, where individuals typically maintain somewhat different relationships with their in-group, out-group, and non-specified others, remains limited. Drawing on insights from informal network research and intergroup contact theory to model trust relationships in network societies, 882 respondents from three network societies -- China, Russia, and South Korea -- were surveyed, and confirmatory factor and path analyses applied. The results suggest that as network importance increases, both in-group trust and out-group trust also increase. Individuals who more commonly draw upon out-group trust ties attach less importance to in-group trust ties. Increases in non-specific trust, however, are associated with increases in both in-group and out-group trust, pointing towards the boundary spanning function of non-specific trust. Consequently, rather than finding a clear indication of whether informal networks persist or recede, ambivalent trust relationships were observed. This calls for a reexamination of the conventional ‘either/or’ perspective on the nature of informal networks. This network heterogeneity can be attributed to individuals, especially in developing network societies, utilizing a ‘both/and’ approach to trust and networking, and yielding more economic opportunities.
Special Issue Theme Background Research on the mechanisms of organizing and managing via interper... more Special Issue Theme Background Research on the mechanisms of organizing and managing via interpersonal relations has a rich history in the management and organization-oriented literature. So far, however, the informal dimension of managing and organizing by drawing on informal networks in an international context has received comparably less attention. Recent research has pointed out that social capital and network theories have largely been developed by Western scholars based on circumstances and social structures that are typical of Western societies. Thus, current theory takes into account to a lesser extent their character and nature and the way in which informal ties and networks are formed in other parts of the world (Ledeneva, 2018; Li, 2007b; Qi, 2013; Sato, 2010). Besides the growing body of literature concerned with informal ties and networks in emerging and transitioning countries, for example guanxi (China), blat/ svyazi (Russia), and wasta (Arab World), a trend for analyzing pervasive informal networks in advanced and industrialized economies, such as yongo (Korea), has arisen. While insights from the latter research stream indicate that informal networks persist, the results generated in both research streams will help in developing the extant informal network theories further.
So far overlooked by the international business ethics literature, we introduce, characterize, an... more So far overlooked by the international business ethics literature, we introduce, characterize, and normatively analyze the use of affective ties and networks in South Korea from an ethical point of view. Whereas the ethics of using Guanxi in China has been comprehensively discussed, Korean informal networks remain difficult to manage for firms in South Korea due to the absence of existing academic debate and research in this field. In this study, we concentrate mainly on the question of whether foreign firms will and can use affective ties in Korea. The informal social network forms are classified and contrasted with the conventional ethical approaches used in international business ethics (relativism, universalism, and social contract theory) to assess which categories can be regarded as ethical or unethical. Finally, foreign firms are advised how to cope with and use different affective network types. Although the nature of affective ties and networks in Korea differs from that found for instance in China (Guanxi), consistent with the conclusion of prior research, we recommend particularistic analysis and decision making regarding the circumstances in which to conclude affective ties and networks and when to opt out. We conclude that foreign firms in Korea should invest in establishing Inmaek, refrain from engaging in Yonjul, and support host country nationals' Yongo ties. Moreover, it is suggested that foreign firms should find ways to monitor and manage informal ties effectively.
Although there has been a large amount written about Chinese Guanxi networks, a detailed debate c... more Although there has been a large amount written about Chinese Guanxi networks, a detailed debate concerning Korean informal relation-based networks is by comparison under-represented in the international business literature. This paper introduces and distinguishes between three forms of informal relation-based networks in Korea: (1) Yongo, (2) Yonjul and (3) Inmaek. Inmaek describes a social network in general, while Yongo networks draw primarily on existing kinship-, university/school-and regional origin-based ties. Contrary to Yongo ties, Yonjul ties exist for a purpose, often to secure personal gains and benefits. In all three forms, kinship-, university/school-and regional origin-based ties play primary, but not exclusive, roles. A better understanding of Korean informal relation-based networks helps contribute to the advancement of knowledge about the anatomy of informal institution, as well as to the growing field of indigenous management research, by identifying and analysing an influential contextual factor in Korea. In addition, it underlines important implications for management practices in Korea.
The International Journal of Human Resource Management, 2017
South Korean human resource management (HRM), characterized by lifetime employment and seniority-... more South Korean human resource management (HRM), characterized by lifetime employment and seniority-based promotion, has been suggested as an important factor contributing to the growth of Korean companies. However, the Asian financial crisis in 1997, raised questions about these practices, and Korean HRM underwent drastic changes, mainly by adopting a more flexible labor market approach. Despite Korean companies' efforts since then to change their HRM to a more western (US) style, much research indicates persistent challenges, both domestically and internationally. In an attempt to explain the challenges, we argue, in this conceptual paper, that it is necessary to consider the informal organization of Korean management in relation to formal organization. We suggest there are complementary overlaps and close integration between formal and informal organizational modes in Korean management. We fill a gap in the literature on the role of informal organization with indigenous Asian notions supporting the balance of opposition.
The Encyclopaedia of Informality, Volume 3: A Hitchhiker's Guide to Informal Problem-Solving in Human Life (ed., Alena Ledeneva), 2024
Informal networking has been regarded as an important accelerator for getting a job and career pr... more Informal networking has been regarded as an important accelerator for getting a job and career progression (Granovetter 1995, 2017). However, there has been little discussion about whether this holds true for men and women alike, and whether we can generalize across countries and cultures. How far informal networking and cultural practices are intertwined and how this leads to social exclusion as a form of gender discrimination has not been extensively analyzed yet. In this lead paper to chapter 5 on 'Belonging and Social Exclusion' we will present two examples of informal networks to show how male dominance and the intertwinement with cultural traditions represent sources of social exclusion of women as a facet of gender discrimination.
We examine the state of artificial intelligence (AI) adoption within the Talent Acquisition (TA) ... more We examine the state of artificial intelligence (AI) adoption within the Talent Acquisition (TA) function, based on a survey with HR leaders (n=477) across various organizations and industries. Our field data revealed that AI adoption within the TA function is not as pronounced and advanced as some recent reports might suggest. In fact, most organizations do not fully leverage AI in TA. We discuss the barriers and challenges to AI adoption in TA, propose solutions, and present ideas on how AI can enhance TA and its broader post-hiring context of managing people and culture in organizations. Beyond chatbots and virtual assistants, we develop four visions of the future frontiers of AI in TA.
Encyclopedia of International Strategic Management, 2024
Informal networks are formed by informal ties between actors. They can be defined as channels emb... more Informal networks are formed by informal ties between actors. They can be defined as channels embedded in the respective culture that provides the general behavioral norms and ideals for interpersonal exchange. Network members have the privilege of access to favors. They can rely on mutual support and goodwill and the sharing of opportunities, which gives them a relational advantage over non-members (Minbaeva et al., 2022; Horak et al., 2020). While informal networks exist in every country, they differ in their extent, intensity and shape. Typical examples of informal networks include guanxi (China), yongo and inmaek (South Korea), wasta (Arab world) or blat and svyazi (Russia and the post-Soviet states).
Purpose - Research on the commitment to customer service (CCS) typically considers either trainab... more Purpose - Research on the commitment to customer service (CCS) typically considers either trainable behavior or external stimuli such as financial incentives vital to CCS. Utilizing the cultural context of Confucian Asia, this study proposes a novel approach that shifts the focus towards the antecedents of the informal institutional environment.
Design/methodology/approach - This research considers four informal institutions typical for Confucian Asia about their influence on CCS: power distance, perceived individual independence, openness to change, and informal network ties. Hypotheses are tested in a structural equation model using data obtained from a South Korean subject pool.
Findings - Results show that informal institutions like power distance and network ties, and mediators like perceived individual independence and openness to change are positively related to CCS. Power distance and network ties also have a direct positive effect on openness to change. Moreover, power distance negatively affects perceived individual independence.
Research limitations/implications - The findings contribute to the service management literature by showing that a given CCS of service employees can be explained by antecedents of the companys informal institutional environment.
Practical implications - From a human resource perspective, the informal institutional environment should be taken into account when establishing a supporting organizational culture and designing management training programs.
Originality/value - This research introduces the institutional view to services management research, focusing on the role that informal institutions play. In particular, factors like power distance and network ties that influence CCS are tested for the first time.
The rise of emerging markets such as China, Brazil, Russia, and the Middle East has led to an inc... more The rise of emerging markets such as China, Brazil, Russia, and the Middle East has led to an increase in interest in understanding the nature and working mechanisms of informal networks (guanxi, yongo, wasta, blat/svyazi, etc.), which are instrumental in international business (IB) activities in these markets. Unlike Chinese informal networks, which have been researched extensively, studies on several other important informal networks remain sporadic and peripheral. From a theoretical point of view, it can be argued that the typical characteristics and behavioral ideals implied by social network theory do not fully reflect the networking ideals and practices in many non-Western countries. At the same time, international business practitioners may not have a thorough understanding of how to engage effectively in informal networking abroad or of how local managers actually network. Motivated by the wish to close this knowledge gap and work toward an inclusive and integrative theory of informal networks in international business studies, this paper suggests treating informal networks as an important type of social capital and informal institution of the respective business environment at the same time. As such, researching informal networks can be regarded a distinct research area positioned at the intersection of social capital, social network, and (informal) institution theory. Finally, emerging theories are presented that indicate a path for developing informal network theory further in international business studies.
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Papers by Sven Horak
through, and derived from the network of relationships possessed by an individual. We distinguish three schools of thought on social capital: the first views it alongside other forms of capital - economic, cultural, symbolic - to explain social stratification, highlighting the benefits of network membership; the second merges sociological and economic perspectives, emphasizing the functions and outcomes of social capital for individuals, groups, organizations, and institutions; the third focuses on societal features such as trust, norms, and networks that enhance societal efficiency. Further, this paper explores developments in social capital theory, demonstrates specific applications, and suggests areas for future research.
informal networks include guanxi (China), yongo and inmaek (South Korea), wasta (Arab world) or blat and svyazi (Russia and the post-Soviet states).
Design/methodology/approach - This research considers four informal institutions typical for Confucian Asia about their influence on CCS: power distance, perceived individual independence, openness to change, and informal network ties. Hypotheses are tested in a structural equation model using data obtained from a South Korean subject pool.
Findings - Results show that informal institutions like power distance and network ties, and mediators like perceived individual independence and openness to change are positively related to CCS. Power distance and network ties also have a direct positive effect on openness to change. Moreover, power distance negatively affects perceived individual independence.
Research limitations/implications - The findings contribute to the service management literature by showing that a given CCS of service employees can be explained by antecedents of the companys informal institutional environment.
Practical implications - From a human resource perspective, the informal institutional environment should be taken into account when establishing a supporting organizational culture and designing management training programs.
Originality/value - This research introduces the institutional view to services management research, focusing on the role that informal institutions play. In particular, factors like power distance and network ties that influence CCS are tested for the first time.
through, and derived from the network of relationships possessed by an individual. We distinguish three schools of thought on social capital: the first views it alongside other forms of capital - economic, cultural, symbolic - to explain social stratification, highlighting the benefits of network membership; the second merges sociological and economic perspectives, emphasizing the functions and outcomes of social capital for individuals, groups, organizations, and institutions; the third focuses on societal features such as trust, norms, and networks that enhance societal efficiency. Further, this paper explores developments in social capital theory, demonstrates specific applications, and suggests areas for future research.
informal networks include guanxi (China), yongo and inmaek (South Korea), wasta (Arab world) or blat and svyazi (Russia and the post-Soviet states).
Design/methodology/approach - This research considers four informal institutions typical for Confucian Asia about their influence on CCS: power distance, perceived individual independence, openness to change, and informal network ties. Hypotheses are tested in a structural equation model using data obtained from a South Korean subject pool.
Findings - Results show that informal institutions like power distance and network ties, and mediators like perceived individual independence and openness to change are positively related to CCS. Power distance and network ties also have a direct positive effect on openness to change. Moreover, power distance negatively affects perceived individual independence.
Research limitations/implications - The findings contribute to the service management literature by showing that a given CCS of service employees can be explained by antecedents of the companys informal institutional environment.
Practical implications - From a human resource perspective, the informal institutional environment should be taken into account when establishing a supporting organizational culture and designing management training programs.
Originality/value - This research introduces the institutional view to services management research, focusing on the role that informal institutions play. In particular, factors like power distance and network ties that influence CCS are tested for the first time.