Persistence and Strengths of Informal Networks – Clientelism in the post-Soviet Union
Horak, S. & Bader V. (2023). Persistence and Strengths of Informal Networks
– Clientelism in the post-Soviet Union. European Journal of International
Management, 19(2), 265-294. DOI: 10.1504/EJIM.2020.10021180
Link:
https://doi.org/10.1504/EJIM.2020.10021180
Abstract
In this theoretical study, we challenge two prevalent assumptions in the
international business domain: the “disappearance of informal networks” and the
“strength of weak ties” assumption. By doing so, we draw from cultural as well
as informality studies and explore the phenomenon of clientelism and its
characteristics in the post-Soviet Union. We first conceptualize clientelism as
an informal reciprocal exchange mechanism between a patron and a client, defined
by mutual benefits on a long-term basis that also can underlay and lead to other
forms of informal exchange practices such as clanism, blat, and kinship. As a
result, we argue that informal networks and ties based on patron-client
relations are neither disappearing nor is weakness a characteristic that makes
them strong. We propose that diverse clientelistic ties appear to persist in the
post-Soviet Union, as they are culturally embedded and dynamically adjust to
changes in the environment. Furthermore, we assume that, contrary to the West,
typically strong ties prevail in informal networks in the East. Finally, we
argue that the nature of clientelism is paradoxical: on the one hand, it is
prone to favoritism, unfair competition, corruption or bribery but, when it
comes to weak governments, clientelistic practices may, on the other hand, be
seen an effective means to give aid to poor or disadvantaged citizens. Also, it
can help to overcome social boundaries by connecting persons of different social
classes. Our conceptualization of clientelism and the specifics of informal
networks in the post-Soviet Union, as well as our propositions, can inform
future research at the intersection of international business and informality
studies.
Keywords
Clientelism, patronage, corruption, informality, informal institutions,
blat/svyazi, post-Soviet Union, emerging markets, Russia