NGOs operating in emerging markets dealing with institutional voids A qualitative study regarding activities and strategies employed by NGOs in response to institutional voids

Abstract

The purpose of this study is to uncover how NGOs are confronted with institutional voids in emerging and developing markets. Furthermore, it has been assessed how NGOs addressed the identified institutional voids in terms of applied activities and strategies. This research applied a qualitative research design. Data was collected by means of interviewing eight NGO representatives. The results of this study indicate that NGOs are confronted with institutional voids from all five institutional dimensions. Most of the institutional voids were already identified in the literature. However, three new institutional voids in the labour-, capital- and informal institutions were identified. In terms of addressing institutional voids, ten different activities and strategies were identified. Most notable activity to address institutional voids was providing training and education, which was used to address voids in all five institutional dimensions. Furthermore, it appeared that involving relevant actors and applying a relational strategy are important activities to support NGO projects. Therefore, this study has shown how institutional voids can exist in both formal and informal institutions, and uncovered activities and strategies to address each institutional void.