How Institutions Shape Uncertainty and Risk

Autores

DOI:

https://doi.org/10.18568/internext.v16i3.604

Palavras-chave:

New Institutional Economics. Risk. Uncertainty. Institutions. Decision Making.

Resumo

Purpose: The study proposes a conceptual framework on how institutions influence risk and uncertainty. Beyond the nuances in defining the concepts in the existing literature, the role of institutions in shaping risks and uncertainties remains understudied. This paper adopts the new institutional economics (NIE) perspective to revisit the concepts of risk and uncertainty and provide a deeper reflection about its interactions with formal and informal institutions.

Method: Our conceptual model is based on four propositions that support a theoretical explanation about the relationships between institutions and uncertainties, institutions and risks, and uncertainties and risks.

Findings: While formal institutions have a primary role in reducing uncertainties, informal institutions can be seen as a source of risk. These findings imply firms’ strategic decisions. In this regard, we also provide a research agenda for future empirical studies in the area.

Originality/value: The study highlights the importance of institutions for companies to deal with risk and uncertainties. The institutions have a primary role in defining the “known part” of the uncertainty, allowing the companies to evaluate the different scenarios for decision-making.

Theoretical/Methodological Contributions: This study differentiates risk and uncertainty interaction according to institutional theory. Additionally, we offer an academic discussion of how formal and informal institutions can shape risks and uncertainties.

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Biografia do Autor

Stephanie Tonn Goulart Moura, Fundação Universidade Regional de Blumenau – FURB, Santa Catarina, (Brasil).

Doutoranda em Management and Marketing University College Cork, UCC, (Irlanda).

Christian Daniel Falaster, Fundação Universidade Regional de Blumenau – FURB, Santa Catarina, (Brasil).

Doutor em Administração pela Universidade Nove de Julho - UNINOVE, São Paulo, (Brasil). Professor do Programa de Pós-Graduação em Administração (PPGAd) e do Programa de Pós-Graduação em Ciências Contábeis (PPGCC) da Universidade Regional de Blumenau - FURB.

Christine Elena Bianchi, Fundação Universidade Regional de Blumenau – FURB, Santa Catarina, (Brasil).

Mestra em Administração pela Fundação Universidade Regional de Blumenau - FURB, Santa Catarina, (Brasil).

Érica de Souza Mazato, Fundação Universidade Regional de Blumenau – FURB, Santa Catarina, (Brasil).

Mestra em Administração pela Universidade Regional de Blumenau - FURB, Santa Catarina, (Brasil).

Laura Taysa Espig, Fundação Universidade Regional de Blumenau – FURB, Santa Catarina, (Brasil).

Mestranda do Programa de Pós-Graduanção em Administração da Fundação Regional de Blumenau - FURB, Santa Catarina, (Brasil).

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Publicado

2021-09-01

Como Citar

Moura, S. T. G., Falaster, C. D., Bianchi, C. E., Mazato, Érica de S., & Espig, L. T. (2021). How Institutions Shape Uncertainty and Risk. Internext, 16(3), 238–251. https://doi.org/10.18568/internext.v16i3.604

Edição

v. 16 n. 3 (2021): Setembro - Dezembro

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