Metagovernance and Democratic Legitimacy: a theoretical essay in light of non-market approaches

Guilherme Paulo  Andrade; Júlio César  Andrade de Abreu; Ruan Carlos dos Santos; Saleh Fadel Ahmad  Khatib

doi:10.21434/IberoamericanJCG.v9i.116

Authors

Guilherme Paulo Andrade University Federal Fluminense, UFF, Rio de Janeiro
Júlio César Andrade de Abreu Federal University of Rio de Janeiro, Rio de Janeiro
Ruan Carlos dos Santos Centro Universitário Avantis - UNIAVAN, Santa Catarina
Saleh Fadel Ahmad Khatib University Teknologi Malaysia

DOI:

https://doi.org/10.21434/IberoamericanJCG.v9i.116

Keywords:

Metagovernance, Market, Non-market, Democracy, Government

Abstract

Purpose of the study: The aim of this study is to demonstrate why metagovernance is not effective in increasing the democratic legitimacy of networks; to this end, an articulated map will be presented to describe how interactions occur within metagoverned environments.

Methodology/approach: To construct the macro-model of analysis, the methodology of Quivy and Campenhoudt (2005) was used. To consolidate the knowledge involved in the theoretical approach, the Knowledge Development Process-Constructivist (Proknow-C) method by Ensslin, Dutra and Ensslin (2000)
was used. Such a proposal allowed a multidisciplinary perspective, capturing important concepts from economics and organizational theory to apply them to the meta-governed environment.

Originality/Relevance: Metagovernance systems suggest some ability to provide democratic plurality to a social environment, in that we need to understand "if" and "how" this applies; metagovernance is recent in academia and is under discussion; we need to understand its impact in countries with developing institutional environments.

Key findings: Metagoverned systems involve multiple players; difficulty of reconciliation raises transaction costs, both ex-ante - to achieve consensus in the network - and ex-post - when creating mechanisms to deal with disgruntled actors. Such a scenario leads key players to effect coalitions to 'narrow the road' to their own interests, and practice corporate political activity seeking to influence decision making. Actions will focus on impacting the public agent designated as metagovernor, in order to influence possible changes in the environment (regulation).

Theoretical/methodological contributions: An articulated map has been proposed, presenting the cycle of interactions within a metagoverned environment. It shows that sometimes the decisions taken are not the most democratic ones, but those of interest to coalitions.

Social contributions / to management: From a legitimacy perspective, it is necessary to understand how the outcome of networked decision-making can become more democratic, and how metagoverned environments can become less susceptible to harmful corporate political activity, especially in developing democracies.

Author Biographies

Guilherme Paulo Andrade, University Federal Fluminense, UFF, Rio de Janeiro

Master's in Administration from the Universidade Federal Fluminense (UFF). Bachelor's degree in Economic Sciences from the Federal University of Rio de Janeiro (2011). Bachelor in Accounting Sciences from the Universidade Federal Fluminense (2016). Works mainly on the following topics: governance mechanisms, public administration and accounting in the third sector.

Júlio César Andrade de Abreu, Federal University of Rio de Janeiro, Rio de Janeiro

PhD in Administration from the Federal University of Bahia (UFBA) with a sandwich internship at the Complutense University of Madrid, Spain. Master in Administration (UFBA) with an internship period in the University of Coimbra, Portugal. Specialist in Social Movements, Popular Organizations and Participatory Democracy (UFMG) and in Information Systems Administration (UFLA). He was coordinator of the Public Administration Course at Universidade Federal Fluminense (UFF) University Pole of Volta Redonda (PNAP/UAB/CEDERJ). He acted as consultant in the area of public management for several national (ENAP, FINEP, CAPES, CNPq, INEP) and international (ONU/PNUD) public institutions.

Ruan Carlos dos Santos, Centro Universitário Avantis - UNIAVAN, Santa Catarina

Bachelor's Degree in Philosophy from the University of Southern Santa Catarina (2006). Full Degree in Philosophy and Social Sciences from Faculdade Integrada do Cruzeiro - FIC (2018). Bachelor in Theology from the Faculdade Católica de Santa Catarina Católica - FACASC/ITESC (2008). Specialization and MBA in Strategic Business Management from Faculdade Porto das Águas -
FAPAG (2012). Specialization in Teaching Methodology of Philosophy and Sociology by Faculdade de Administração, Ciências, Educação e Letras - FACEL (2018). MBA in Corporate Governance at UnIBF (2019).

Saleh Fadel Ahmad Khatib, University Teknologi Malaysia

Ph.D. scholar at University Teknologi Malaysia. He has published several scholarly articles in various domestic and international peer reviewed journals and participated in many international conferences. His researches can be found in Business Strategy and The Environment, environmental impact assessment review, and Journal of Asian Finance Economics and Business. His research interests are related to the Corporate governance, Auditing, Firm performance, Financial policy, Capital structure, Cash holdings, Dividends, Disclosure quality, and Corporate social responsibility. Khatib earned his M.S. in finance from
Limkokwing University in Malaysia in 2018.

References

Albareda, L., & Waddock, S. (2018). Networked CSR governance: A whole network approach to meta-governance. Business & Society, v. 57, n. 4, p. 636-675. DOI: https://doi.org/10.1177/0007650315624205

Ayres, S. (2014). Place-based leadership: Reflections on scale, agency and theory. Regional Studies, Regional Science, v. 1, n. 1, 21–24. DOI: https://doi.org/10.1080/21681376.2013.869424

Ayres, S., Sandford, M., & Coombes, T. (2017). Policy-making ‘front’ and ‘back’ stage: Assessing the implications for effectiveness and democracy. British Journal of Politics and International Relations, v. 19. N. 4, p. 861-876. DOI: https://doi.org/10.1177/1369148117721842

Back, D., & Allen, D. B. (2010). What every CEO needs to know about nonmarket strategy. MIT Sloan Management Review, v. 51, n. 2, p. 40-49.

Bakker, F., Groenewegen, P., & Hond, F. (2005). A bibliometric analysis of 30 years or research and theory on corporate social responsibility and Corporate Social Performance. Business & Society, v. 44, n. 3, p. 283-317. DOI: https://doi.org/10.1177/0007650305278086

Barbosa, C. P. (2019). Economia da Estratégia. In: Abdalla et al (Org). Administração Estratégica. 1. ed. São Paulo: Atlas, p. 199-219.

Barley, S. R. (2010). Building an Institutional Field to Corral a Government: A Case to Set an Agenda for organization studies. DOI: https://doi.org/10.1177/0170840610372572

Organization Studies, v. 31, p. 777-805.

Baron, D. P. (1995). Integrated Strategy: Market and Nonmarket Components. Califórnia Management Review, v. 37, n. 2, p. 47-65. DOI: https://doi.org/10.2307/41165788

Barron, A. (2010). Unlocking the mindsets of Government Affairs Managers: Cultural dimensions of corporate political activity. DOI: https://doi.org/10.1108/13527601011038697

Cross Cultural Management: an International Journal, v. 17, n. 2, p. 101-117.

Barron, A. (2011). Exploring national culture's consequences on international business lobbying. Journal of World Business, v. 46, n. 3, p. 320-327. DOI: https://doi.org/10.1016/j.jwb.2010.07.008

Bator, F. M. (1958). The Anatomy of Market Failure. The Quarterly Journal of Economics, v. 72, n. 3, p. 351-379. DOI: https://doi.org/10.2307/1882231

Bekker, M. C. (2014). Project Governance: 'Schools of Thought". South African Journal of Economic and Management Sciences, v. 17, n. 1, p. 22-32. DOI: https://doi.org/10.4102/sajems.v17i1.595

Bernanke, B., & Kuttner, K. (2005). What explains the Stock Market´s Reaction to Federal Reserve Policy? The Journal of Finance, v. LX, n. 3, p. 1221-1257. DOI: https://doi.org/10.1111/j.1540-6261.2005.00760.x

Bourdieu, P. (2005). Principles of an Economic Anthropology. In: Smelser, N. J., & Swedberg, R. (Ed.). The handbook of economic sociology. Princeton: Princeton University Press, 2a ed., p. 75-89.

Bogason, P., & Musso, J. (2006). The Democratic Prospects of Network Governance. American Review of Public Administration, v. 36, n. 1, p. 3-18. DOI: https://doi.org/10.1177/0275074005282581

Buchanan, J., & Tullock, G. (1965). The Calculus of Consent: Logical Foundations of Constitutional Democracy. 3. ed. Indianápolis: Liberty Fund.

Campos, H. A. (2008). Falhas de Mercado e falhas de governo: uma revisão de literatura sobre regulação econômica. Prismas: Direito, Políticas Públicas e Mundialização, v. 5, p. 281-303. DOI: https://doi.org/10.5102/prismas.v5i2.702

Carroll, A. B. (1999). Corporate social responsibility: evolution of a definitional construction. Business & Society, v.38, n.3, p.268-295. DOI: https://doi.org/10.1177/000765039903800303

Coase, R. (1960). The problem of social cost. The Journal of Law & Economics, v. 3, p. 1-44. DOI: https://doi.org/10.1086/466560

Costa, A. S. M., & Abdalla, M. (2019). Atividade Política Corporativa. In: Abdalla et al. (Org.). Administração Estratégica. 1. ed. São Paulo: Atlas, p. 177-198.

Curi, D. P. (2019). Responsabilidade Social Corporativa e Estratégia. In: Abdalla et al. (Org.). Administração Estratégica. 1. ed. São Paulo: Atlas, p. 177-198.

Dahl, R. A. (1961). Who governs? New Haven: Yale University Press.

Dutra, A., Ripool-Feliu, V. M. R., Fillol, A. G., Ensslin, S. R., & Ensslin, L. (2015). The construction of knowledge from the scientific literature about the theme seaport performance evaluation. The International Journal of Productivity and Performance Management, v. 64, n. 2, p. 243-269. DOI: https://doi.org/10.1108/IJPPM-01-2014-0015

Eberlein, B. (2019). Who fills the global governance gap? Rethinking the roles of business and government in global governance. Organization Studies, v. 40, 1125–1145. DOI: https://doi.org/10.1177/0170840619847720

Ensslin, L., Dutra, A., & Ensslin, S. R. (2000). MCDA: A constructivist approach to the management of human resources at a Governmental Agency. International Transactions in Operational Research - ITORS, v. 7, p. 79-100. DOI: https://doi.org/10.1111/j.1475-3995.2000.tb00186.x

Entwistle, T., Bristow, G., Hines, F., Donaldson, S., & Martin, S. (2007). The dysfunctions of markets, hierarchies and networks in the meta-governance of partnership. Urban Studies, v. 44, n. 1, p. 63-79. DOI: https://doi.org/10.1080/00420980601023836

Eshuis, J., & Van Buuren, A. (2014). Innovations in water governance: the importance of time. International Review of Administrative Sciences, v. 80, n. 2, p. 401-420. DOI: https://doi.org/10.1177/0020852313514518

Evans, B. (2007). The Politics of Partnership: Urban Regeneration in New East Manchester. Public Policy and Administration, v. 22, n 2, p. 201–215. DOI: https://doi.org/10.1177/0952076707075896

Fairclough, N. (2001). Discurso e Mudança Social. Traduzido por Izabel Magalhães. Brasília: Editora Universidade de Brasília.

Fernandes, D. (2019). Na França, acordo entre UE e Mercosul enfrenta oposição e protestos de agricultores, ambientalistas e até ministros. BBC. Paris, 7 jul. 2019. Disponível em: https://www.bbc.com/portuguese/internacional-48845254

Fligstein, N., & Dauter, L. (2012). The Sociology of Markets. Annual Review of Sociology, v. 33, p. 105-128. Friedman, M. (1962). Capitalism and Freedom. Chicago: University of Chicago Press. DOI: https://doi.org/10.1146/annurev.soc.33.040406.131736

Ge, L., & Brewster, C. A. (2016). Informational institutions in the agrifood sector: meta-information and meta-governance of environmental sustainability. Current Opinion in Environmental Sustainability, v. 18, p. 73-81. DOI: https://doi.org/10.1016/j.cosust.2015.10.002

Gjaltema, J., Biesbroek, R., & Termeer, K. (2019). From government to governance… to metagovernance: a systematic literature review. Public Management Review, v. 22, n. 12, p. 1760-1780. DOI: https://doi.org/10.1080/14719037.2019.1648697

Hayek, F. A. (1990). O caminho da servidão. Tradução de Anna Maria Capovilla, José Ítalo Stelle e Liane de Morais Ribeiro, 5ª ed. Rio de Janeiro: Instituto Liberal.

Hayek, F. A. (2011). Desemprego e política monetária. Tradução de Francisco Leme, 2ª ed. São Paulo: Instituto Mises Brasil.

Hayek, F. A. (1985). A. Direito, Legislação e Liberdade. Tradução de Henry Maksoud, 1. ed. Goiânia: Editora Visão.

Hirst, P., & Thompson, G. (1998). Globalização em Questão: A Economia Internacional e as Possibilidades de Governabilidade. Petrópolis: Vozes.

Hofstede, G. (2001). Culture’s Consequences – International Differences in Work-Related Values. Thousand Oaks: Sage Publications.

Holmen, A. K. T. (2011). Governance Networks in City-regions: In the Spirit of Democratic Accountability? Public Policy and Administration, v. 26, n. 4, p. 399-418. DOI: https://doi.org/10.1177/0952076710375773

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. DOI: https://doi.org/10.1016/0304-405X(76)90026-X

Journal of Financial Economics, v. 3, n. 4, p. 305-360.

Jessop, B. (1998). The rise of governance and the risks of failure: The case of economic development. International Social Science Journal, v. 50, n. 155, p. 29–46. DOI: https://doi.org/10.1111/1468-2451.00107

Jevons, W. S. (1965). The theory of political economy. New York: Sentry Press.

Kar-Gupta, S., & Trompiz, G. (2019). Agricultores da França revoltados com acordos depredam escritórios de parlamentares.

Reuters. França, 8 ago. 2019. Disponível em: https://br.reuters.com/article/worldNews/idBRKCN1UY22O-OBRWD

Klakegg, O. J., Williams, T., Magnussen, O. M., & Glasspool, H. (2008). Governance frameworks for public project development and estimation. Project Management Journal, v. 39, n. S1, p. 27-42. DOI: https://doi.org/10.1002/pmj.20058

Keynes, J. M. (1996). A Teoria Geral do Emprego, do Juro e da Moeda. Tradução de Mário R. da Cruz, 6ª ed. São Paulo: Editora Nova Cultural.

Klijn, E. H., & Teisman, G. R. (2003). Institutional and strategic barriers to public–private partnership: An analysis of Dutch cases. Public Money & Management, v. 23, n. 3, p. 137–146. DOI: https://doi.org/10.1111/1467-9302.00361

Kwak, Y. H., Chih, Y. Y., & Ibbs, C. W. (2009). Towards a comprehensive understanding of public–private partnerships for infrastructure development. California Management Review, v. 51, n. 2, p. 51–78. DOI: https://doi.org/10.2307/41166480

Li, B., Akintoye, A., Edwards, P. J. & Hardcastle, C. (2005). Critical success factors for PPP/PFI projects in the UK construction industry. Construction Management and Economics, v. 23, n. 5, p. 459–471. DOI: https://doi.org/10.1080/01446190500041537

Loch, M., & Gunther, H. F. (2015). Estratégias de não mercado: uma revisão integrativa. Revista de Administração FACES Journal, v. 14, n. 1, p. 88-94, jan./mar.

Mankiw, N.G. Introdução à Economia. 6ª Edição. São Paulo: Cengage, 2013.